So this story is significant. In general terms, an ASQC study shows that outsourcing manufacturing to Mexico or PRChina is not "the" solution.
That's clear from a new business survey from Milwaukee-based American Society for Quality, which polled more than 300 companies to find what they liked and didn't like about outsourcing.
The survey, done in October, found that 55% of the companies were "substantially dissatisfied" with their outsource provider in the areas of innovation and making process improvements. Only 34% said outsourcing provided a good value.
Fewer than half of the companies, 41%, said outsourcing met their performance metrics....Communication problems, poor customer service, slow delivery times, and quality control are just some of the pitfalls.
When you send back 1/3 of the product for re-work, especially in a JIT environment, you're in trouble.